A GST panel has proposed ending the IGST exemption on gold, silver and platinum imports by banks and certain nominated agencies. If the proposal is approved, these imports would attract 3% Integrated GST (IGST).

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The recommendation has come from the GST Fitment Committee, which reviews tax rates and related GST rules before proposals are considered by the GST Council.

The exemption was originally introduced in 2017 to make it easier for banks and authorised agencies to import gold. It was later extended to silver and platinum.

The latest proposal is linked partly to a mismatch between two government lists. The Directorate General of Foreign Trade (DGFT) updates the list of banks allowed to import precious metals. However, the GST notification providing the exemption was not updated when the new DGFT list came into effect on April 1, 2026.

According to the committee, this meant that banks were effectively no longer receiving the IGST exemption from that date. The committee has now proposed formally withdrawing the exemption for banks and nominated agencies covered under the relevant categories.

Importantly, the proposed 3% IGST does not necessarily mean that banks will ultimately bear an additional 3% tax cost. Eligible banks and agencies can claim the IGST they pay as input tax credit and use that credit to offset their GST liability.

The committee has also proposed changes to GST rules governing supplies of gold, silver and platinum by nominated agencies under export-linked schemes.

The recommendation is not yet the same as a final tax decision. The proposal would need to go through the GST Council and the required government process before becoming effective.